Managing The Human Resources Essay Example for Free

Managing The Human Resources Essay INTRODUCTION: This assignment is based on a case study titled Hot Work at the Aluminium Smelter in Lynmouth, and it examines the current HRM principles being used within the organisation. The HR values that are being investigated are HRM or people management values, team effectiveness and the effect of motivation, communication and the culture in the organisation, and leadership qualities. The overall aim of this assignment is to provide appropriate business solutions that help in improving the effectiveness of the organisation, from the perspective of a HR consultant. HRM PEOPLE MANAGEMENT VALUES: Armstrong (2000) argues that personnel practioners are often confused when asked about the difference between HRM and personnel management. According to Storey (1995) HRM is said to be fundamentally unitarist. This makes the management at Lynmouth more HR than personnel, as although the unions membership levels were low and their influence was weak, they were recognised by management in respect of white-collar staff. Also teamworking was introduced with the cooperation of the plants trade union, and they were asked to recommend the number of posts required for the new line that was to open in 2000. This shows that the management did consider the unions before reaching a decision. The climate of employee relations could be characterized as suspicious and mistrustful, indicating to a model of personnel management (Sisson 1994). In HRM, rules, procedures and contracts are an obstruction to effective performances and there is an emphasis on strategy and devolved responsibility to line management (Storey 1996). At Lynemouth, there were rules and guidelines set for the team leaders and employees worked according to shifts, and pay was not performance related. Read more:  Personnel vs Human Resources Although these values point towards personnel management (Sisson 1994), Lynemouth also inculcates HRM values. Despite each plant having specialist staff that kept the plant within its operating limits, team leaders worked as line managers (Storey 1996) and were responsible for the coordination and scheduling of work. Also there are few job categories and teamwork is preferred to division of labour (Storey 1995). There is a great deal of task flexibility (Sisson 1994) in the teams, and in 2000 they were given greater autonomy. Boxall Purcell (2003) states that HRM can be interpreted as having a soft developmental humanist approach or a hard situational contingent approach. The soft version emphasizes a people-centred approach to HRM, whereas the hard version emphasizes a resource-based approach (Thornhill Saunders 1998). Although the organisation appears to be soft with the implementation of teams, they can be viewed as being hard economically, as the organisation aims were resource focused, there appeared to be low trust between employees, and there was also functional flexibility within the teams (Kane et al. 1999). Responsibility for hiring new staff, and for assessing applications for internal transfers, were devolved to shop-floor workers, thus making them more flexible. A hard approach is often seen as an essential part of cost-minimization strategy (Kane et al. 1999), which appears to be the situation at Lynemouth. TEAM EFFECTIVENSS THE EFFECT OF MOTIVATION: A team is a work group or a unit with a common purpose through which members develop mutual relationships for the achievement of goals/tasks (Harris Harris 1996). Vyakarnam et al (1999) states that a number of studies have confirmed that successful ventures are often established by teams rather than a single person, and the core competence of a successful team is to build and manage relationships around a common vision. The management team at Lynemouth havent clearly described the team goals or each individuals specific task. It is essential that the first step in creating a team is to define the goal or goals that create the direction for the new group (Twomey Kleiner 1996; Arroba 1996). Harris Harris (1996) explain that teams are successful and effective when they overcome difficulties, achieved through interdependence. Teams also promote a sense of confidence and direction among the team members and helps becoming more flexible in nature (Arroba 1996). Among shop-floor workers at Lynemouth with regard to satisfaction and commitment, there was a greater sense of autonomy and participation. With regard to work organisation, there was an increase in multi-skilling, and there were clear examples of improved flexibility. For example, team members would work a crane as required, rather than waiting for a dedicated crane driver. The major difference between successful teamwork and unsuccessful teamwork is largely based upon team members sharing common goals and working together to achieve them (Tarricone Luca 2002). They also state that ineffective communication, lack of resources and lack of trust are the key attributes that hinder the effectiveness of a team. At Lynemouth, the workers were clear that the divide between manager and worker was as sharp as ever and that the enforcement of discipline was not part of the teams duties. There appeared to be low trust between them, and also communication with regard to specific tasks seems to be lacking. It is also advisable to establish a sense of urgency so that the teams dont get complacent (Twomey Kleiner 1996). Ritchie Martin (2001) states that money and tangible rewards, the physical conditions and the structure are the three key factors motivating people in a working environment. Although teamwork was favourable from a shop-floor point of view, middle managers and technical staff had reservations about teamwork, feeling undervalued and lacking determination. Macaulay Cook (2001) states that rewards and recognition processes help to focus attention on priorities, thus motivating individuals. Group leaders felt that the work they were being given was not sufficiently demanding, and technical staff felt that that their job territory was under threat. There seems to be a need for rules and guidelines in the work place, for direction and certainty (Ritchie Martin 2001). Thompson (2004) concludes that people could be motivated further and made more effective if they were given appropriate encouragement and attention. COMMUNICATION CULTURE: According to Connolly (1996) communication is a critical issue and everyone wants better communication within their team, between teams and across their organization. Employee communication should play a strategic role in an organization to work effectively (Barrett 2002). In the early 1990s there was a wide perception at Lynemouth that communication was poor, and the climate of employee relations could be characterized as suspicious and mistrustful. Barrett (2002) also emphasizes that without effective employee communication, change is impossible, and in 1997 with Lynemoths future in doubt, the management realized the importance of communication and set about to win employee consent by reforming the communication system. With regard to this, teamwork was introduced with the cooperation of the plants trade unions, which encouraged further development in employee relations. However, with the success of teamwork, white-collar staff felt undervalued. Peng Litteljohn (2001) asserts that structural arrangements may facilitate communication on the one hand, and create barriers for communication on the other. Group leaders felt that their status and authority were being eroded, and technical staff felt that their job territory was under threat, and changes were made without consulting the people involved, and there was a feeling that the appraisal system was not adequate, as the management did not seem to listen. Connolly (1996) states that to enhance communication, both the employer and the employee should realize the importance of effective communication. The author concludes by saying that perhaps the most effective ways of improving communication are also the simplest taking the time to really notice the employees, listening to how they speak and more importantly to what they say. The management could create a system where employees are rewarded for their good work, as Storey (1995) states that the way in which employees are rewarded is central to the regulation of employment relationship. Handy (1986) states that every organization is different, and each organization has a different culture sets of values and norms and beliefs. In 1990, many workers had been with the plant since it opened, and labour turnover was low. Majority of the workers were male, with few women being employed in clerical posts. There is a close and sometimes unclear relationship between organisational culture and its climate (Wallace, J et al. 1999). Although the climate of employee relations could be characterised as suspicious and mistrustful at Lynemouth, work organisation was considered to be fairly conventional. Handy (1986) argues that if organizations are to survive and meaningful jobs are to be created for all those who want to work, then both organizations and individuals will have to change the way they perceive jobs and careers. He also states that fewer, better-motivated people could create much more added value than large groups of unthinking, demotivated individuals. Lynemouth, with the introduction of teamworking could be seen as incorporating these values. However, the management at Lynemouth should create meaningful jobs for all employees. The structure of Lynemouths employees could be characterized under senior managers, middle managers and workers. Handy (1986) argues that organizations are not owned by anyone, but are a community of people who could be called citizens of the community rather than employees. Ogbor (2001) asserts that organisational culture should discourage dysfunctional work behaviours, and commit members of the organization to do things for and with one another that are in the best interests of the organization. LEADERSHIP QUALITIES: The American general, Dwight Eisenhower, once said that the essence of leadership is to make people do what you want them to with as much will, determination and enthusiasm as if they had decided for themselves (Popper Zakkai 1994). Cacioppe (1997) suggests that recent reviews of the research and theories on leadership have consolidated the key areas of leadership into personality, transactional and transformational forms of leadership. He also states that honesty, inspiration, competent, fair-mindedness and supportiveness are the characteristics that people most admire in leaders, where as Tait (1996) suggests that vision, interpersonal skills, character and drive are the four attributes considered to be necessary personality traits for business leadership. Transactional leadership is based on the interplay between the leaders guidance or direction and socio-emotional support, and the readiness or developmental level that followers exhibit on a particular task, function, or objective (Avery and Ryan 2002). The third major approach is the Transformational leadership which communicates a vision that inspires and motivates people to achieve something extraordinary (Cacioppe 1997). Transactional leadership remains highly popular among practitioners and it could be applied at Lynemouth. It appeals to managers because of its intuitive simplicity, ease of use, and perceived relevance to managerial roles (Avery and Ryan 2002). In 2000, with the end of direct supervision, management appointed team leaders from existing team members, following a formal application procedure. Team leaders were made responsible for team briefing and the coordination and scheduling of work, and they did receive an additional weekly allowance of à ¯Ã‚ ¿Ã‚ ½100. The management at Lynemouth could also try to incorporate the transformational leadership values by providing every individual and team with a vision and also motivating them, thus improving leadership effectiveness at the team levels (Cacioppe 1996). Silverthorne (2000) believes that the readiness and willingness of subordinates to perform tasks are the important aspects that contribute to a leaders effectiveness. CONCLUSION: This assignment investigated the current HRM principles being used within the organisation. A few key points in improving the effectiveness of an organisation are effective teams, effective communication between the teams and good leadership skills. Lynemouth could improve the effectiveness of their organisation by motivating each individual, improving the communication between the employers and the management, and also by providing individual, team and organisational goals for the leaders to follow. REFERENCE: Armstrong, M 2000, The name has changed but has the game remained the same?, Journal of Employee Relations, vol. 22, no. 6, pp. 576-593. Arroba, T 1996, Why are common objectives so uncommon in top management teams?, Journal of Team Performance Management, vol. 2, no. 1, pp 17-21. Avery, G.C Ryan, J 2002, Applying situational leadership in Australia, The Journal of Management Development, vol. 21, no. 4, pp 242-262. Barrett, D.J 2002, Change communication: using strategic employee communication to facilitate major change, Corporate Communications: An International Journal, vol. 7, no. 4, pp 219-234. Boxall, P Purcell, J 2003, Strategy and Human Resource Management, Palgrave, New York. Cacioppe, R 1997, Leadership moment by moment!, Leadership and Organization Development Journal, vol. 18, no. 7, pp 335-345. Connolly, C 1996, Communication: getting to the heart of the matter, Journal of Management Development Review, vol. 9, no. 7, pp 37-40. Handy, C.B 1976, Understanding Organisations, Penguin Group, London. Harris, P.R Harris, K.G 1996, Managing effectively through teams, Journal of Team Performance Management, vol. 2, no. 3, pp 23-36. Kane, B et al. 1999, Barriers to effective HRM, International Journal of Manpower, vol. 20, no. 8, pp 494-516. Macaulay, S Cook, S 2001, Rewarding Service Success, Journal of Team Performance Management, vol. 5, no. 1, pp 4-8. Ogbor, J.O 2001, Critical theory and the hegemony of corporate culture, Journal of Organizational Change Management, vol. 14, no. 6, pp 590-638. Peng, W Litteljohn, D 2001, Organisational communication and strategy implementation a primary inquiry, International Journal of Contemporary Hospitality Management, vol. 13, no. 7, pp 360-363. Popper, M Zakkai, E 1994, Transactional, Charismatic and Transformational Leadership: Conditions Conducive to their Predominance, Leadership and Organization Development Journal, vol. 15, no. 6, pp 3-7. Silverthorne, C 2000, Situational leadership theory in Taiwan: a different culture perspective, Leadership and Organization Development Journal, vol. 21, no. 2, pp 68-74. Sisson, K 1994, Personnel Management A comprehensive guide to Theory and Practice in Britain, 2nd edn, Blackwell, Oxford. Storey, J 1995, Human Resource Management A critical text, Thomson, London. Storey, J 1995, Is HRM catching on?, International Journal of Manpower, vol. 16, no. 4, pp 3-10. Storey, J 1996, Blackwell cases in Human Resource and Change Management, Blackwell, Oxford. Tait, R 1996, The attributes of leadership, Leadership and Organization Development Journal, vol 17, no. 1, pp27-31. Tarricone, P Luca, J 2002, Employees, teamwork and social interdependence a formula for successful business?, Journal of Team Performance Management, vol. 8, no. 3, pp 54-59. Thompson, J. L 2004, Innovation through people, Journal of Management Decision, vol. 42, no. 9, pp 1082-1094. Thornhill, A Saunders, M.N.K 1998, What if line managers dont realize theyre responsible for HR?, Personnel Review Journal, vol. 12, no. 6, pp 460-476. Twomey, K Kleiner, B.H 1996, Teamwork: The essence of the successful organisation, vol. 2, no. 1, pp 6-8. Vyakarnam, S et al. 1999, Exploring the formation of entrepreneurial teams: the key to rapid growth business?, Journal of Small Business and Enterprise Development, vol. 6, no. 2, pp 153-165. Wallace, J 1999, The relationship between organisational culture, organisational climate and managerial values, International Journal of Public Sector Management, vol. 12, no. 7, pp 548-564.

Idealism, Realism, and Marxism in Todays World of Politics Essays

Idealism, Realism, and Marxism in Today's World of Politics Realism is a method to study and practice international politics. It is the oldest form of international relations in political history. It takes an approach where it emphasizes all world politics deals with the pursuit of power, and states fight for the control of this power. It makes the assumption that all states are only motivated by national interests, which mostly is applied and presented as moral concerns. Realists believe that power can be achieved through strength. They believe that states should go after interests which are only possible to achieve. They also imply that states should not go after the interests of its opponent as that will merely cause a war. Thomas Hobbes, who lived between, 1588 and 1679, was known as ?Forefather of Realism?, in his famous book, Leviathan, he says 'if any two men desire the same thing, which nevertheless both cannot enjoy, they become enemies and?endeavor to destroy or subdue one other'. This is the basic idea around which Realism is based, that is, conflict is inevitable. Hans Morgenthau was also one of the great thinkers of realism, he lived between 1904 and 1980, he was convinced that politics is essentially a struggle for power, and in his most famous book, Politics Among Nations, he explains this conviction by saying, "... the struggle for power is universal in time and space and is an undeniable fact of experience ... Even though anthropologists have shown that certain primitive people seem to be free from desire for power, nobody has yet shown how their state of mind and the conditions under which they live can be recreated on a worldwide scale so as to eliminate the struggle for power from the internatio... ...s political theories and analysis of international relations, it is still a phenomenon which is very unpredictable and situational. But in spite of this, these theories are still relevant and important because they help to establish a proper framework for analyzing international relations. I also feel that a combination of these theories would be more successful in understanding and implementing in international relations rather than focusing and practicing one of the theories. Bibliography: International Politics on a World Stage ? John T. Rourke  HYPERLINK http://www.utm.edu/research/iep/p/polreal.html
http://www.utm.edu/research/iep/p/polreal.html  HYPERLINK http://www.mtholyoke.edu/acad/intrel/pol116/realism.html
http://www.mtholyoke.edu/acad/intrel/pol116/realism.html 4) http://www.unet.univie.ac.at/~a8700288/research/ODYSSEY.html

Final IB Draft Sashi Ratnayake

The final and third chapter would be to understand how the company responds to the Integration Responsiveness Framework (IRE) and the pressures it face when local responsiveness is been discussed along with how the company reacts to global responsiveness. The key learning and the findings after formulation of the report are, The Coca-Cola Company is one that followed geocentric policy but now it's a recognition policy. Due to unfavorable situations, in its performance the company moved to the transnational strategy from the global strategy.Coca- Cola as a company holds a higher stake in the integration responsiveness ramekin while it concentrates on worldwide learning and flexibility. Acknowledgement would like to take this opportunity to express my profound gratitude to our lecturer Dry. Mashes Samaritan for her tremendous support and guidance throughout this assignment. It is due to her teaching, supervision and encouragement that I have been able to successfully understand and com plete this assignment. Would specially thank my parents for helping me out financially and morally to plan my career for the following two years.And I would like to thank all the staff members at PIPIT city campus and all hose of the individuals, who's the names are not mentioned. Without the help of you all, the completion of this assignment would have never been possible. This exercise is not done with the soul intension of obtaining good grades but to increase my work skills and business skills in planning out a bright future ahead. Thankful again. The report is formulated in such a way to explain how The Coca-Cola Company came up in rankings as the world's largest beverage manufacturer, while evaluating its international business environment.The report will critically evaluate the following questions and sub sections: Chapter 1- Aim 1 is to critically analyze how The Coca-Cola Company executes their international staffing policies and how the company develop global managers Aim 2 is to demonstrate how Coca-Cola's overall Human Resource Management (HARM) Chapter 2- Aim 1 is to critically analyze Coca-Cola's internationalization strategy and the advantages that they derive from that particular strategy. Aim 2 is to critically evaluate how Coca-Cola achieves efficiency, flexibility and worldwide learning.Chapter 3- Aim 1 is to analyze Coca-Cola's Integration responsiveness framework Aim 2 is to analyze the pressures that Coca-Cola faces for local responsiveness and lobar integration Figure 1 – Explanation of Questions and aims Source: Authors work The structure of the report will critically unveils the companies' values, culture, entry strategies, internationalization strategy, ethical standards and the impacts faced by other competitors for local responsiveness. Meanwhile, to prepare the following report key reference books, leading journal articles and relevant websites utilized in the area of International Business were used. We strive to have a lim ited number of international people in the field because generally local people are better equipped to do business at their mom locations,† argued Peters, director of HER for corporate finance and human resources in Atlanta, previously HER director for Coca-Cola's Northwest European division, Infusion (1994). According to Permute (1969) Mac's were thinking about doing business on a global scale, and how this mindset was shaping the companies orientation towards doing business around the world.The orientation of a NC can be reflected in its product offerings, organizational culture, methods to managing foreign workers and recruitment of employees for top positions. 1 . Ethnocentric Orientation – home country 2. Polytechnic Orientation – host country . Geocentric Orientation – whole world Recalling the above statement from one of the key individuals of the Coca- Cola Company it is evident that Coca-Cola sees itself not as a global organization, but as a tran snational enterprise following a geocentric policy which has been extended into a recognition policy.Coca-Cola's transnational strategy allows business operations in more than 200 destinations worldwide while operating under the respective local laws, trends and cultural differences. Therefore the technique used by the beverage giant is to employee many nationals in its international business. The Coca-Cola Company, 2014) Though such a trend exist within the boundaries of the company the need of expatriates have been arousing based on two reasons. Sweatshops, 2010) As argued by Sweatshops (2010) one reason is to fill a need for a specific set of skills that may not exist at a particular location. The second reason according to Sweatshops, (2010) is that if employees cross borders and relocate themselves in different locations and subsidiaries it would be for their own development. Infusion (1994) explains how Peters supporting this argument said, â€Å"before you take on serious se nior managerial accessibility in the company, you should have had an international exposure. The above statement also touches upon how Coca-Cola develop individuals till they reach the level of global managers while focusing on how much international exposures is there before selecting global managers who should possess international caliber. (Infusion, 1994) Figure 2 – Linkage of Staffing Strategies Source: International Business E by Sweatshops (2010) According to Permute (1969) and Sweatshops (2010) there are pros and cons throughout, while Coca-Cola identifies the below as strengths and threats, StrengthsThe best use of human resources Building a cadre of international employees compatible with any culture Multidimensional transfer of core competencies help in creating value through an experience curve of different economies According to the Coca-Cola Company (2010) the above advancements in the year 2009, when they entered the Great Place to Work Institute United Kingdom 's rankings for Great Britain for the first time as No. 26.The reads Host government restrictions on staffing Very high expenses due to the need of providing for the families of transfer employees Meanwhile, Coca Cola focus on human resources development by incineration on the education and training of its employees spending millions every year for training. After significant investigation and researches, Coca Cola In 2007, launched Coca Cola university (Call) a virtual, global university for all learning and capability-building activities across the Company. E-Learning was used to train Coca Cola newly recruited managers and expatriates (Sweatshops, 2010).According to Bandmaster (1995) introduces four methods that is now used by Coca-Cola to train expatriates for international assignments, 1. Pre-departure training for expatriates These training sessions will provide expatriates and their family with information related housing, schools, shopping, and health care facilities in the host Country. 2. On-site training for expatriates At the host country the expatriate will receive additional onsite training to familiarize the expatriate with the local working procedures and work environment.These formal programs will deliver orientation about the host country customs and cultures. 3. Repatriation Expatriates and their family Will adapt the host country norms and culture especially in long-term assignment. Usually they will experience high level of tress and cultural shock when return to the home country as a result Of changes that have taken place since their leaving. 4. Training for Host Country Nationals (Hess) and Third Country Nationals (Tics) All employees from team leaders upwards are given an annual skills assessment and development plan.When looking at the above facts and figures, it is evident that the Coca-Cola Company is a geocentric company trying to extend the branches to grow as a recognition company. The staffing methods used by Coca-Cola can be pr aised due to the allocation of labor units throughout the world while ongoing what is best for the company and the locality of the subsidiaries. The overall HARM structure of the company also lies at a very high stake with a promise to grow more with a high level human friendly environment. Boozer (201 1) argued that, â€Å"the key for international companies is finding the right mix of global and local in their operations.

The New Paradigm of Globalisation - Free Essay Example

Sample details Pages: 8 Words: 2306 Downloads: 8 Date added: 2017/06/26 Category Uncategorized Essay Type Argumentative essay Did you like this example? Introduction The subject that will be reviewed in this paper is the impact globalisation is having on governments and multinational firms within developing economies, as well as the new risks and costs associated with the globalisation. This review is based on Ian Bremmerà ¢Ã¢â€š ¬Ã¢â€ž ¢s Harvard Business Review article à ¢Ã¢â€š ¬Ã‹Å"The New Rules of Globalisationà ¢Ã¢â€š ¬Ã¢â€ž ¢ published 2014, in volume 92, January-February, pages 103-107. Globalisation has made developing nationsà ¢Ã¢â€š ¬Ã¢â€ž ¢ governments reluctant to grant multinationals unbridled access to their local industries, resulting in the implementation of state capitalism. With the 2008 decline of the globalisation trend, the world has seemed to enter a phase of à ¢Ã¢â€š ¬Ã‹Å"guarded globalisationà ¢Ã¢â€š ¬Ã¢â€ž ¢. Indeed, emerging economies specifically, are taking steps to ensure the strategic protection of essential local industries, and to prevent foreign firms from pushing their agendas domestically. In order to be tter accommodate these new risks, Bremmer suggests the contributing factors to this variation of globalisation, illustrates several strategic approaches executives may follow to lessen the impact of guarded globalisation. These approaches highlight multinationalsà ¢Ã¢â€š ¬Ã¢â€ž ¢ strategic value to the host government and domestic government. Don’t waste time! Our writers will create an original "The New Paradigm of Globalisation" essay for you Create order Body Bremmer argues that one of the main reasons for guarded globalisation is that governments in various developing economies are inclined to change laws or rules regarding the way business may be conducted within their borders. This potentially gives local firms the advantage while erecting financial and political barriers for foreign firms. State capitalism differs from the regular sense of the word, in that the government will seek to control the nationà ¢Ã¢â€š ¬Ã¢â€ž ¢s market wealth and dominate its economic development, whereas in free markets, the goal is profitability and widespread economic growth. The resurgence of state capitalism influences free markets, thus changing the known globalisation paradigm. A valid point stressed by Bremmer is that if foreign firms wish to cope with the new rules of globalisation they must not only contend with locally-backed firms, but also express their strategic value in the host market. Nevertheless, foreign firms still have a fighting ch ance. The author elaborates several strategies for riding the wave of guarded globalisation in the article. *** The author distinguishes guarded globalisation as a different essence of globalisation; one that is slow-moving, selective and prone to nationalism. This suggests that governments pick the nations they wish to do business with, where they place state investments, and select the state-owned firms they want to support. The movement of guarded globalisation may be attributed to the following factors. Governments are now discovering threats from opening industries to foreign firms because domestic businesses and customers often boycott the foreign entrants. Certain countries have amassed hefty foreign exchange reserves and increased exports. As such those nations are not looking to draw large foreign investments. Governmentsà ¢Ã¢â€š ¬Ã¢â€ž ¢ national security interests have expanded because of modern threats such as cyber espionage, telecommunications, information technology and financial instability. China doesnà ¢Ã¢â€š ¬Ã¢â€ž ¢t follow but instead institutes new international business rules and its socialistic proclivities may threaten globalisation. Developing economiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ leaders are strategically intervening to create one-sided playing fields that lend the upper-hand to domestic players. These five factors are fairly comprehensive list of influences, however a 6th factor may be that governments in all developing economies (Middle East, Asia, South America, Africa), not just the largest BRICS economies, are realizing the strategic importance and economic value of their industries, and are no longer content with allowing foreign multinationals to exploit these sectors. Having obtained strategic industry assistance from previously invited foreign entrants (Pfizer, p103, column 1), they are now learning to à ¢Ã¢â€š ¬Ã‹Å"ride the bikeà ¢Ã¢â€š ¬Ã¢â€ž ¢ without training wheels, desiring to operate their important industries themselves (Cipla, p103, column 1). Bremmer makes good on his introductory assurance by describing how the plates have shifted with regards to the rise of state capitalism in important emerging markets giving strong examples Russia, China and the UAE, where the degree of state-ownership has become valuable and economically beneficial. Costs and ri sks associated with state capitalism include but arenà ¢Ã¢â€š ¬Ã¢â€ž ¢t limited to: having to compete with state-backed firms, competing for scarce resources, contending with local price ceilings, and increased government corruptionà ¢Ã¢â€š ¬Ã¢â‚¬ countries tend to differ in the degree of state capitalism. A major finding in this article proposes that although in the recent past, MNEs were granted entry to worldwide industries (food products, clothing), other more key sectors (aircraft manufacturing) were inaccessible. However, in the current environment of guarded globalisation, any industry sector could be deemed as having strategic interest to the state depending on the local governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s approach and political disposition. In conclusion, many host countries are now drawing official scrutiny, now that the stateà ¢Ã¢â€š ¬Ã¢â€ž ¢s interests have consciously extended beyond previously vital sectors. Whereas state capitalism aims to control market wealth th rough governments playing a dominant role in public sector firms, free market capitalism proposes maximized profits and economic growth for all parties involved. The article clearly reflects the popularity of the state controlling the market, among nations such as China, Russia, India and Brazil, and that controlled markets are crucial to their sustained economic growth and increasing the autocratic regimeà ¢Ã¢â€š ¬Ã¢â€ž ¢s chances of staying in power, allowing greater control to be exercised over job creation and local living standards. Developing Economies State Capitalism Bremmer declares that Chinese firms account for more than half of the nationà ¢Ã¢â€š ¬Ã¢â€ž ¢s GDP and jobs, the majority of which are state owned, but didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t provide adequate referencing to back this claim. An implied limiting factor is the effect a nationà ¢Ã¢â€š ¬Ã¢â€ž ¢s GDP data has on its market, considering these statistics are à ¢Ã¢â€š ¬Ã‹Å"regressiveà ¢Ã¢â€š ¬Ã¢â€ž ¢ and generally there is a time difference between the end of the financial quarter and the release date of the GDP figures. Economic challenges for China not listed by Bremmer are: their misleading economic policies which result in Chinaà ¢Ã¢â€š ¬Ã¢â€ž ¢s dependence on investments and exports, particularly from West, for the growth of their economy, broadening of national income gaps, Chinaà ¢Ã¢â€š ¬Ã¢â€ž ¢s frail banking system, and the threat of rising environmental pollution. (Source: https://fas.org/sgp/crs/row/RL33534.pdf) Although China, Russia and the UAE have encountered consid erable economic success related to state-owned industries and key companies, and have passed legislation to support state capitalism, other large emergent economies such as Brazil and South Africa show a far lesser degree of success in these endeavors. South African state-owned electricity enterprise Eskom, faces much competition from private sector firms and faces the pressures of not being able to provide sufficient power to the nation by 2016. In contrast, Chinaà ¢Ã¢â€š ¬Ã¢â€ž ¢s dominant majority of state-run firms account for more than 50% of the nationà ¢Ã¢â€š ¬Ã¢â€ž ¢s GDP employment. (Original HBR page 104, column 3, paragraph 2) Perhaps Walmartà ¢Ã¢â€š ¬Ã¢â€ž ¢s 2012 deal with South Africa to set up local supermarket chains wasnà ¢Ã¢â€š ¬Ã¢â€ž ¢t the best long-term deal for the economic sustainability of the state, considering the emergence of Walmart as a giant low-priced supermarket competitor will pressure domestically supported supermarkets such as Checkers, Spa r and Woolworths. Bremmer reminds readers of the importance of not over-paying domestic suppliers of national energy, as the country needs to power its economy. This is certainly an interesting point when contrasted governments such as South Africa, where the private enterprises heavily compete for the control of the energy industry, and if successful would lead to the privatization, and consumers paying overpriced rates for energy. There is a limit to how much state-backed companies can contribute to growth, because if the government is not able to allocate national resources as well as the market can state-capitalist economies grow less innovative and transparent. Perhaps this implication cannot be assumed for all state capitalist nations. Is Bremmer suggesting the UAE is quickly becoming less innovative, despite Dubai and Abu Dhabi boasting one of the most developed economies in the Arab Gulf and claims one of the worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s highest GDP per capita? (Source: ht tps://www.tradingeconomics.com/united-arab-emirates/gdp-growth) We have gained valuable insight as a group from Bremmerà ¢Ã¢â€š ¬Ã¢â€ž ¢s opinion on growing doubts linked to American capitalism. The U.S. governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s recently publicized activities of spying on citizens, scandalized by Snowden, makes a large portion of the international community view US firms as proponents of an American variation of state capitalism (gathering data rather than profits). The result is increased scrutiny abroad for U.S. firms, and foreign governments opting to choose to support local companies instead. U.S. telecommunication and IT companies in particular will now face much distrust from the governments in the developing economic sectors they wish to operate. Strength of this article is Bremmerà ¢Ã¢â€š ¬Ã¢â€ž ¢s caution to executives to recognize and anticipate the ways governments in developing nations redefine national interests, and form new restrictive policies against fo reign MNEs. Halting foreign expansion could give rivals all the business, and impulsive foreign market pursuing may be detrimental in the long-run. Further strengths include Bremmerà ¢Ã¢â€š ¬Ã¢â€ž ¢s caution to keep costs of nationally provided energy as low as possible, and the identification of todayà ¢Ã¢â€š ¬Ã¢â€ž ¢s new global risks for MNEs. (HBR page 106) Weaknesses of this article may include Bremmer voicing that JVs havenà ¢Ã¢â€š ¬Ã¢â€ž ¢t been popular for years without providing evidence for this claim. Additionally the article draws comparisons between emerging economiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ state-run companies, and how their contribution to GDP varies, however is this not to be expected, taking into account the contrasting differences in population, natural resources, and exports? (Original HBR page 104, column 3, paragraph 23) Is it meaningful to draw conclusions of how effective state capitalism is for developing economies based on the percentage each nationà ¢Ã¢â€š ¬Ã¢â€ž ¢s state-backed firms contribute to the GDP? What Bremmer wishes managers would learn from this article is to ask themselves: 1) Is our industry strategically important to the government of the host country? 2) Is our industry strategically important to our home government? His 22 matrix is helpful in visualizing a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s globalisation positioning relative to how mangers answer those questions Strategies for Managing Guarded Globalisation Managers and MNE executives in industries strategically important to home government are urged to consider the following approaches to managing the risks of guarded globalisation. STAYING HOME: Many industry sectors are becoming more politically sensitive. If a firm enters a strategic foreign sector it should as a requisite take into account the possible policy changes that would force it to leave, and develop exit strategies and contingency plans. BECOME MORE à ¢Ã¢â€š ¬Ã‹Å"STRATEGICà ¢Ã¢â€š ¬Ã¢â€ž ¢ AT HOME: Companies making the choice to boost value to home government rather than creating value abroad. They vie for state attention to view their product/services sector as strategic and valuable in hopes of blocking out foreign competition and bolstering profits through creating government relationship ties. USE OF STATE TO FIGHT OTHER STATES: use of government-government relations to sort out problems (BP-UAE oil concession ordeal HBR page 106, column 1 paragraph 2) Com panies must choose which bait to offer to (appease) the host government. Truly, firms in host nations are at the political liberty of the state. They must operate according to set regulations, adapt local perception and act according to host country sensitivities if they wish to continue operating profitably abroad. STRIKE ALLIANCES: Firms partnering with other local player(s) to share risks and profits with the aim of benefiting the industry. Many companies will have to strike partnership deals with local players if they wish to enter the host market. Bremmerà ¢Ã¢â€š ¬Ã¢â€ž ¢s additional strategies for executives include: adding value to the state through a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s products or services, developing multi-business strategies and investments to diversify and spread risk, building strategic value in developing nations to secure a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s right to stay within that country where local competitors canà ¢Ã¢â€š ¬Ã¢â€ž ¢t provide, capitalizing on state capitalism, or firms committing to using local resources to endure state scrutiny Bremmerà ¢Ã¢â€š ¬Ã¢â€ž ¢s findings build upon Verbekeà ¢Ã¢â€š ¬Ã¢â€ž ¢s question of à ¢Ã¢â€š ¬Ã‹Å"where to locate what type of activity in which way, and what effect it will have on the company and its environment. We have read about market seeking MNEs and export platforms, penetrating emerging state capitalist industries, through varying modes of entry, their impact in the host economy and how they dealt with competition, changing politics and adaptation to new rules of international business. Moreover we can relate Bartlett and Ghoshalà ¢Ã¢â€š ¬Ã¢â€ž ¢s argument of autonomy to the strategic importance of each market, determined by the firm, and the availability of autonomy boosting resources to the firm, such as resources, labor, information flows, and labor. Conclusion To conclude this review, an organisation willing to operate in emerging markets, where the state capital and the political influence of firms is high, has to account for some setbacks. The political system in the home country of a firm can and will likely back local players, because they want their domestic companies and economy to flourish. These setbacks can be the objection of licenses, new business laws, and price limit on certain goods. To adapt to these setbacks and to obtain a better market position in these emerging markets Bremmer has some tactics for organisations to use. In short, the article is current and valuable for managers and students, providing an update on pertinent changes of the new rules of capitalism and the way developing economies are altering the perception of international business. There are however some questions left unanswered, which we would like to ask the author: You do give some specific examples of strategic firm tactics you propose will aid executives in dealing with guarded globalisation, but what tactic would you recommend for what size of organisation? And can it also be an aggregation of multiple tactics? Do you think that a worldwide organisation should intervene in the emerging markets, as a third party that erects financial and political barriers for exploitive foreign firms trying to enter? And why or why not? What do you propose will happen to the American version of state capitalism, which you suggest focuses on gathering data rather than profits, now that their reputation has been damaged by global distrust due to the recent IT/internet privacy scandals? Page | 1